Changing business environments and the interconnected global economy have created new risks for organizations, which in turn have prompted the need for greater awareness and protection against supply chain disruption. However, while greater awareness is important, it does not always translate into a true understanding of the risk. For example, a recent study conducted by Oliver Wyman in conjunction with the National Association of Corporate Directors (1) showed that 51 percent of those surveyed indicated that they were not provided with adequate information to deliver IT risk oversight.
Contrast that with the growing awareness of cyber risks generally. With the clear realization that technology failure and cyber attacks represent a greater threat to most organizations than adverse weather, fire and social unrest combined, an odd mix has been created of hyper-focus at one level within a company and confusion at another. Given the growing loss potential from supply chain risks, companies need to ensure they understand their supply chains and offer all data to their insurers.
1. Taming Information Technology Risk: A New Framework for Boards of Directors.